Strategic Metals to buy six properties from ATACStrategic Metals to buy six properties from ATAC
2010-01-14 15:24 ET - News Release
Also News Release (C-ATC) Atac Resources Ltd
Mr. Graham Downs reports
STRATEGIC METALS LTD. ANNOUNCES KEY FARM-IN AND DRILL PLANS FOR 2010
Strategic Metals Ltd. plans to fund diamond drill programs at nine of its most prospective projects during 2010. It is also pleased to announce that it has signed a farm-in agreement for six properties, three of which are among the properties expected to be drilled in 2010.
The nine projects that are scheduled for drilling in summer and fall 2010 include: five porphyry copper-gold prospects (GK, Vanderhoof Copper, Nikki, Mars, and Buzz) located in the main porphyry belts of British Columbia and Yukon; and, four volcanogenic massive sulphide (VMS) targets situated in the Finlayson VMS district of Yukon near the Wolverine Mine, which Yukon Zinc Corp. has announced it will open in mid-2010. Drill targets on these properties include numerous surface showings, historical drill intercepts and various types of geochemical and geophysical anomalies.
On Jan. 14, 2010, Strategic completed an agreement with ATAC Resources Ltd. which grants Strategic the right to purchase. The agreement is subject to regulatory acceptance. Information regarding each of the properties is summarized below.
Buzz property is a porphyry-type gold-copper prospect located northwest of Lillooet in southern BC. Strategic has purchased a 100-per-cent interest in four mineral tenures covering about 1864 hectares. This property is not subject to any underlying royalty interests.
Nikki property hosts porphyry-type copper-gold and skarn hosted gold mineralization. It is located south of Beaver Creek in southwestern Yukon and is comprised of 40 mineral claims covering 836 hectares. Strategic has bought a 100-per-cent interest in the property and there are no underlying royalties.
Mars property is an alkalic porphyry gold-copper prospect situated northeast of Whitehorse in southern Yukon. Strategic has purchased a 100-per-cent interest in claims comprising part of this property and a 50-per-cent interest in claims that comprise the remainder of this property. It is negotiating with an arm's length party who owns the remaining 50-per-cent interest. The property consists of 50 claims covering 1046 hectares.
Hartless Joe property covers an extensive system of epithermal gold-silver veins. It lies northeast of Whitehorse and comprises 68 claims in two blocks totalling 1313.5 hectares. Strategic has purchased a 100-per-cent interest subject to an underlying net smelter return royalty payable to an arms-length prospector.
Scurvy property contains shear-hosted gold mineralization. It consists of 42 claims that cover 877.6 hectares and which are located northeast of Watson Lake in southeastern Yukon. Strategic has bought a 100-per-cent interest which is not subject to any underlying royalty interests.
Lost Horses property consists of 180 claims in four blocks totalling 3762.5 hectares. It lies southeast of Dawson in west-central Yukon. Strategic has purchased a 100-per-cent interest in all four claim blocks, none of which is subject to underlying royalty interests.
Under the agreement, ATAC has the optional right to earn-back a 50-per-cent interest in any interest subsequently held by Strategic in any of the subject properties, by making a cash payment equal to twice the exploration and holding costs incurred by Strategic in regard to that property. The back-in right is exercisable on Dec. 31, 2013. If ATAC exercises its back-in right for any property, a joint venture will be formed in regard to that property.
Strategic has also significantly added to its portfolio of mineral claims by staking 11 new properties since mid-October 2009. Most of the recently acquired properties are gold exploration targets. With these acquisitions, Strategic holds interests in more than 80 projects. It is in negotiations with various arms length parties regarding farm-outs for a number of its projects.
Strategic's other major assets are its strong working capital position (about $14 million in cash, T-Bills, and GICs) and its large portfolio of marketable shares in other companies (currently totalling approximately $16.5 million). Its main stockholdings are 8,806,286 shares of ATAC Resources Ltd. and 9,748,000 shares of Rockhaven Resources Ltd. Strategic also holds one million share purchase warrants each entitling it to purchase one additional ATAC share for 50 cents per share and 386,500 share purchase warrants each entitling it to purchase one additional Rockhaven share for
.20/share.
"Strategic continues to research and negotiate a variety of transactions that we are confident will create additional value for shareholders," states Doug Eaton, chief executive officer and president. "The aggressive drill programs we have budgeted for 2010 are aimed at unlocking the discovery premiums' that we feel are hidden in our large portfolio of quality projects."
We seek Safe Harbor.